Admiral Taverns management has confirmed it has formed a partnership with Proprium Capital Partners and C&C Group to acquire the company, which has an estate of 845 predominantly wet-led community pubs.
The Admiral management team led by chief executive Kevin Georgel will remain in place. The pubs are 95% freehold or long leasehold, in predominantly suburban or city locations and are operated as a tenanted estate. In 2014, Admiral acquired 111 pubs from Star Pubs and Bars in 2014.
Georgel said: 'Recent years have seen Admiral Taverns go from strength to strength and I am delighted that with the support of our new investors we will have the platform in place to continue our development and execute our growth plans.
'Today, our nationwide estate of community pubs showcases the supported-tied model at its best. Our strategy remains unapologetically consistent and I look forward to working with the support of our new investors to continue to build on the significant progress the business has made over the last five years and take advantage of the opportunities within our markets, as and when they arise.'
The C&C Group, makers of Magners cider and Tennent’s beer, has invested £37m representing 47% of the issued capital of Admiral.
Stephen Glancey, C&C CEO, said: 'For C&C, this is an attractive opportunity to create a new long-term investment in the important on-trade channel, without taking significant financial and operational risk. The investment will provide our brands with improved distribution in some of the best community pubs across the UK, with an opportunity to enhance on-trade penetration further over time.
'The local pub remains at the heart of many suburban and city communities – often the hub of local activity and their economic and social contribution is immeasurable. C&C has a long and successful track-record of supplying and providing financial support to local pubs within the independent free-trade in Scotland and Ireland.
'In the UK, the tenanted pub model is a key component of the pub industry. When well invested, and with the right operator and product range, it can provide excellent sustainable returns to all participants.'
Admiral’s latest accounts for the 52 weeks to 28 May 2016, showed an underlying EBITDA of £25.2 million and an underlying EBITDA margin of 36.2%. As at 28 May 2016, the gross assets of the Admiral business were £231.8m and the gross property assets were valued at £244.3m.